Paweł Surówka discusses obstacles to cyber resilience and opportunities for insurers to address the cyber insurance protection gap.
This interview was conducted on the sidelines of the 2019 General Assembly in Buenos Aires.
The unique characteristics of cyber risk imply that exposure measurement and modelling approaches that have been developed for other perils cannot easily be transferred to cyber risk. The insurance industry has made progress in developing the technical capabilities to handle these distinct characteristics of cyber risk, but there is still some way to go.
Cyber insurance offerings and premium volumes have expanded sizeably. Keeping up with demand is challenging and sustainable growth in the cyber insurance market should not be taken for granted, as accumulation risks need to be addressed in the context of a hyperconnected digital world.
Also of interest:
The insurance industry has a key role to play in developing digital platforms that can revolutionise the allocation of health resources and patient experience, says Jonathan Larsen, Chief Innovation Officer, Ping An Group and CEO, Global Voyager Fund. Recorded at the 45th General Assembly.
It remains to be seen whether improved predictability of loss expectations matches with principles such as risk pooling and law of large numbers, says Joachim Wenning, Chairman of Munich Re. Recorded at the 45th General Assembly.
A robust cyber insurance market requires insurers to provide not only cyber risk transfer, but also cyberattack prevention and mitigation services. However, a pre-condition is to raise the level of awareness and readiness of businesses—particularly small and medium-sized enterprises (SMEs), which are usually unaware of vulnerabilities and risk exposures.
This infographic accompanies the report: Cyber Insurance as a Risk Mitigation Strategy
The use of big data analytics in insurance offers significant societal benefits, as improved understanding of risks can inform risk reduction and enhance insurability. However, individuals, firms and regulators face complex trade-offs when balancing the benefits and risks of using personal data from digital sources to calculate insurance premiums.
Our new report explores these issues, and aims to contribute to an informed and fact-based regulatory debate on access to and use of data in insurance - find out more at the following links:
Arvind Parthasarathi, Founder and CEO of Cyence, considers the unique challenges of modelling cyber risk, including lack of data and accumulation risk. Recorded at the 44th General Assembly of The Geneva Association.
Watch all video interviews recorded at the 44th General Assembly on our YouTube channel.
